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ItemThe Effect of Financial Incentives on Labour Supply: Evidence for Lone Parents from Microsimulation and Quasi-Experimental EvaluationCAI, L ; KALB, G ; TSENG, Y ; VU, THH (Institute for Fiscal Studies, 2008-06)The aim of this paper is to analyse the work incentive effects of a change in the Australian tax and transfer system on lone parents in July 2000. To evaluate the effect of the total change only, microsimulation can be used; but for a subgroup of lone parents, a few components of this policy change can be analysed through two alternative approaches - microsimulation and quasi-experimental evaluation. Both approaches examine the effects on the probability of employment and on average working hours. The results from microsimulation show that the combined changes introduced in July 2000 - involving reduced withdrawal rates, changed family payments and lower income tax rates - have increased labour supply for lone parents to a moderate extent. The estimated effect on average working hours when using microsimulation is very close to the effect estimated in a quasi-experimental approach using matching techniques to control for alternative influences.
ItemDoes a minimum job search requirement reduce time on unemployment payments? Evidence from the Jobseeker Diary in AustraliaBorland, J ; Tseng, Y-P (INDUSTRIAL LABOR RELAT REV, 2007-04-01)This study examines the impact of the Jobseeker Diary (JSD), a program designed to increase the job search effort of unemployed persons in Australia. The JSD program is distinguished by combining a focus on work search verification with large scale implementation. Applying a quasi-experimental matching method to data on unemployment spells occurring in 1997–98, the authors find that JSD participation was associated with an increased rate of exit from unemployment payment recipiency and a shorter total time spent on payments. Payment receipt duration is estimated to have fallen for about one-half of JSD participants. The largest effects of the JSD occurred for payment recipients for whom labor demand conditions were the most favorable. Cost-benefit analysis suggests a fairly large net societal gain per program participant.